Devote time now to prepare a business plan for next year

Staying focused and keeping things simple are important goals The challenge After the turbulent year that many advisers have had, your goals should be to stay focused and keep things simple. Your business plan should include dividing clients into appropriate categories, developing a detailed communications plan with investment and lifestyle ideas, setting goals for assets under management, creating tiered service levels, and devising a top-client asset retention strategy. You should also be thinking about incorporating two or three life goals into your planning. It is also valuable to have a clear business plan when it comes to succession planning. This lets prospective buyers know you have thought about the future, and that you have a plan in place to keep the firm operating. The solution Use an existing template and tailor it to your practice. It will take two to three hours a day for a week to finalize the research, conduct client reviews, and assess what has worked and what hasn't over the past year. It is critical not only to formulate a plan, but to update it on a quarterly basis. Just look back on this past year. What was planned in January — maybe increasing a client's large-cap-growth-fund asset allocations in midsummer — may not have made sense as the year unfolded. The goal of a business plan is to have a focus, to keep reinforcing what your practice is known for (branding), and to lock in top clients' assets and referrals. Over the next three weeks, this column will map out a business strategy illustrated with a few success stories. The goal is to provide you with the steps to put together your own plan and provide you with the motivation to do it. By spending a few hours each week following our recommendations, you will have a clear plan in place for January and you can take a breather and enjoy the holidays. Here's what we will be covering in the weeks ahead: Week 1: Review 2009 business plan Week 2: Outline 2010 and five-year goals (the five-year business/life plan) Week 3: Identify three life goals and finalize your plan Wrap up loose ends Before you focus on your business plan, take this week to complete your top-client year-end reviews, conduct any necessary follow-up that remains and put a client appreciation event in place. If you are behind in these areas, finish them now. Here are two tips to get them done this week. Set aside four hours each day of uninterrupted time to complete reviews and follow-up. This tells clients you are focused on them, and they will want to refer people to you. This is the most important tool in executing a business plan and the one that often doesn't get done. As for a client appreciation event, review our November strategies and keep it simple. Time is of the essence, so consider teaming up with a charity event being held in early January and invite clients now. 2009 business plan review The second step this week is to review your 2009 business plan. It may have been a plan your firm required, or even better, a plan put in place because you are running a business. Here are the areas to focus on: … What were your revenue and assets under management goals? … What were your actual revenue and assets under management? … What are the three most important areas your practice focused on in 2009? Did any significant changes or client alignments occur? … What were your top three revenue-generating activities? … What were the three main challenges your practice faced? … In reviewing your 2009 plan, list two or three changes you would have made based on the market. Did you do quarterly business plan reviews and updates? … Did you have an effective communications plan in place for top clients? List each specific monthly or quarterly communication with top clients. … If you could change two areas to run your practice more effectively next year, what would they be? Next week: Reviewing 2009 and setting specific goals for 2010